Toyota Pays $16.4 Million, Its Civil Fine Over Recalls

By MICHELINE MAYNARD; Hiroko Tabuchi contributed reporting.

Published: May 19, 2010

The Transportation Department said Tuesday that Toyota Motor had paid a $16.4 million civil fine, the largest allowed, over a recall of sticking accelerator pedals on 2.3 million vehicles.

The department said the proceeds would go to the Treasury's general fund.

The transportation secretary, Ray LaHood, announced the fine in early April, saying Toyota had failed to promptly notify the government when it learned of similar problems with vehicles elsewhere in the world.

Toyota said on April 19 that it would pay the fine, but it did not admit fault. It had 30 days to make the payment. Toyota still faces dozens of lawsuits.

The fine was the largest civil penalty assessed by the government against a car company. The amount is the maximum set by the Tread Act, which Congress passed last decade after a series of crashes involving Firestone tires on the Ford Explorer.

Separately, Toyota said on Wednesday in Japan that it would recall 4,500 Lexus LS sedans in Japan and about 7,000 overseas to fix a problem with a computerized steering system, which is an optional feature. The recall would affect 3,800 cars in the United States, said Paul Nolasco, a Toyota spokesman in Tokyo.

Since fall, Toyota has recalled more than nine million vehicles worldwide, about six million of them in the United States. The two major recalls involved pedals that could stick open or floor mats that could become entangled in the pedals. Toyota briefly halted production and sales of some vehicles sold in the United States until it could prescribe a repair for the sticking pedals and has repaired more than 2.4 million vehicles in the two recalls.

Though a record for an automaker, the Toyota fine is far less than those the government has levied against companies in other industries. For example, the Justice Department reached a $2.3 billion settlement last September with Pfizer, the pharmaceutical giant, over fraudulent marketing.

The Toyota recalls have been the subject of Congressional hearings that are set to resume Thursday, when a House subcommittee continues an inquiry.

James E. Lentz, the president of Toyota Motor Sales U.S.A., and David L. Strickland, the administration of the National Highway Traffic Safety Administration, are expected to testify.

Lawmakers also are considering comprehensive auto safety reforms that address issues raised by the Toyota recalls, like whether cars should be equipped with event data recorders, nicknamed black boxes, and systems meant to be able to stop the car even if the engine is at full power.

The Senate Commerce Committee will meet Wednesday to discuss that legislation.